Ethanol boom is for real; has staying power

摘要

We have been talking to lots of subscribers by phone in recent weeks. One of the most persistent questions that conies up is whether this "ethanol boom" is for real and has staying power, or if it will soon be an "overbuilt" industry and burn late-comer investors. Many question whether the price of oil will stay at relatively high levels and are concluding that if oil drops sharply, the ethanol boom could turn to bust. But high oil prices are not a passing thing tied to some temporary disruption in supply; they are the result of exploding demand from China and India. That tells us the ethanol boom is very much for real with lots of staying power. It will also have some dramatic spin-off consequences. Here's our longterm outlook.